Modify the IT Chart of Accounts hierarchy

Modify the IT Chart of Accounts hierarchy

Modify the IT Chart of Accounts hierarchy

You can modify the IT Chart of Accounts in the Chart of Accounts stage of the
workbench.

Before you begin

Role required: cost_transparency_admin or cost_transparency_analyst

About this task

The IT chart of accounts hierarchy defines how accounts are related to each other.
Expenses assigned to lower-level accounts can roll up to higher-level accounts by
using rollup rules that you configure.

Procedure

On the Chart of Accounts stage, click Edit next to
Hierarchy.

Drag one of the segments to a different level or drag a segment from the
Segment Definition section to a level in the hierarchy.

If you need to remove a segment, drag it to the trash can.

When you are finished making changes, click Save
Changes.

Figure 1. Adding a segment

Result

The application creates:

An allocation rule for each relationship in the hierarchy. Any rules that
existed for the relationship are deleted.

A filter condition for each rule. The filter condition runs on the Cost
Allocation table, meaning that it determines which allocated expenses, not
unallocated expenses in the general ledger, the rule looks at for matches.

A method for each rule. The method specifies that 100% of the allocation should
roll up to the parent segment.

A read-only metric for the method. The metric is in the form of a script that
tells the application how to process the rollup.

These rules and their corresponding filter conditions, methods, and metrics are not
necessarily used in actual rollup calculations from specific accounts in a segment
to accounts in a parent segment. In the allocation setup stage, you will establish
rollup relationships between specific accounts in different segments. It is at this
time that you can specify exactly how much of any given bucket of expenses is
allocated to a child segment and how much is rolled up to any connected parent
segments.

When you make changes to the hierarchy, the rules that were used by the previous
hierarchy are not deleted or modified. The only exception are the rules that already
created expense lines during allocation. These rules are made inactive if no longer
used by the new hierarchy.

Example

For example, if you start with the default hierarchy and add the Portfolio segment to
level 3 and move the Project segment to level 4, the application creates or modifies
the rollup roles for each segment relationship. The application also creates a
method for each rule, and a scripted metric for each method handle rollups.

Figure 2. Hierarchy modification example

The names of the rules start with Default roll up from and specify the two dimension
tables in the data mart that are part of the hierarchy for the new relationship.

The methods belong to the Rollup allocation group to signify they are created by the
application and used for the segment hierarchy.

The names of the scripted metrics start with Metric to roll up from and also specify
the two dimension tables in the data mart. For example: Metric to rollup from
dm_table_pm_project to dm_table_pm_portfolio.An example of a scripted metric that
rolls up from the